BSkyB investigated over BT 'abuse of power' claim on football rights

BT’s battle with BSkyB over Premier League football rights has sparked an
investigation by the communications watchdog over claims the satellite
broadcaster is abusing its power by refusing to wholesale the Sky Sports
channels on reasonable terms.

BT Sport will broadcast the first game of the new Premier League season on 17 AugustPhoto: ACTION IMAGES

Ofcom said it would investigate a complaint from that alleges BSkyB has refused to let BT sell its channels unless it can sell the BT Sport channels to satellite subscribers in return.

According to BT, the position represents an abuse of BSkyB’s dominance in pay TV. It argues that as a new entrant to the market it should not be forced to allow others to sell its channels.

Ofcom said it would decide next month whether to force BSkyB to let BT provide Sky Sports 1 and 2 via its YouView set top boxes in time for the start of the new Premier League season. The investigation will “consider whether Sky has abused a dominant position under UK and/or EU competition law”.

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BT already offers Sky Sports 1 and 2 to its 800,000 BT Vision customers. That wholesale deal was signed before its capture of a package of Premier League rights and decision to broadcast them to BT broadband subscribers for free, however. The BT Vision service is also due to be gradually phased out in favour of YouView, which was introduced last year.

BT has been trying to negotiate a wholesale deal for Sky Sports 1 and 2 but talks have been deadlocked for months, with each side blaming the other. The BT Sport channels will be available via BSkyB's satellite system, but non-BT broadband customers who want to view them will have to take out a subscription separate from their Sky package.

In response to the challenge from BT, BSkyB last week said it would provide free broadband to its TV subscribers.